ONX Butterfly Strategy
ONX (Investment Managers Series Trust II - Tradr 2X Long ON Daily ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.
ONX is a short-term tactical tool that aims to deliver twice (200%) the daily performance of ON Semiconductor Corporation (Nasdaq: ON), before fees and expenses. The fund primarily enters into total return swap agreements with major global financial institutions that mirror ONs daily returns. In case swaps are unavailable or less efficient, the fund may use FLEX call options or directly hold ON stock. Purchasers holding shares for longer than a day will need to monitor and rebalance their position frequently to attempt to achieve the 2x multiple. Purchasers should conduct their own individual stock research prior to initiating a position and trade with conviction. Due to the complexities of the product, shares tend to perform as anticipated only when the underlying shares are trending and holders are on the positive corresponding side of that trade.
ONX (Investment Managers Series Trust II - Tradr 2X Long ON Daily ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $1.6M, a beta of 6.15 versus the broader market, a 52-week range of 5.29-28.75, average daily share volume of 47K, a public-listing history dating back to 2026. These structural characteristics shape how ONX etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 6.15 indicates ONX has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a butterfly on ONX?
A long call butterfly buys one lower-strike call, sells two ATM calls, and buys one higher-strike call, paying a small net debit for a defined-risk position that maxes out if the underlying pins the middle strike at expiration.
ONX snapshot
As of September 29, 2026, spot at $6.89, ATM IV 153.00%, expected move 43.86%. The butterfly on ONX below is built from the September 29, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 80-day expiry.
Why this butterfly structure on ONX specifically: IV rank is unavailable in the current snapshot, so regime-based timing for ONX is inferred from ATM IV at 153.00% alone, with a market-implied 1-standard-deviation move of approximately 43.86% (roughly $3.02 on the underlying). The 80-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ONX expiries trade a higher absolute premium for lower per-day decay. Position sizing on ONX should anchor to the underlying notional of $6.89 per share and to the trader's directional view on ONX etf.
ONX butterfly setup
The ONX butterfly below is built from the September 29, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With ONX at $6.89 on that close, the first option leg uses a $6.55 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ONX chain at a 80-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 ONX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $6.55 | N/A |
| Sell 2 | Call | $6.89 | N/A |
| Buy 1 | Call | $7.23 | N/A |
ONX butterfly risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
Max profit equals the wing width minus net debit times 100 (reached when the underlying pins the middle strike); max loss equals the net debit times 100. Two breakevens at lower-wing plus debit and upper-wing minus debit.
ONX butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on ONX. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.
When traders use butterfly on ONX
Butterflies on ONX are pinning bets - traders use them when they expect ONX to settle near a specific level at expiration (often the prior close, a round number, or the max-pain strike) and want defined-risk exposure to that outcome.
ONX thesis for this butterfly
The market-implied 1-standard-deviation range for ONX extends from approximately $3.87 on the downside to $9.91 on the upside. A ONX long call butterfly is a pinning play: it pays maximum at the middle strike if ONX settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. As a Financial Services name, ONX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ONX-specific events.
ONX butterfly positions are structurally neutral / pin (limited-risk, limited-reward); the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. ONX positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ONX alongside the broader basket even when ONX-specific fundamentals are unchanged. Always rebuild the position from current ONX chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on ONX?
- A butterfly on ONX is the butterfly strategy applied to ONX (etf). The strategy is structurally neutral / pin (limited-risk, limited-reward): A long call butterfly buys one lower-strike call, sells two ATM calls, and buys one higher-strike call, paying a small net debit for a defined-risk position that maxes out if the underlying pins the middle strike at expiration. With ONX etf at $6.89 on the September 29, 2026 close, the strikes shown on this page are snapped to the nearest listed ONX chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are ONX butterfly max profit and max loss calculated?
- Max profit equals the wing width minus net debit times 100 (reached when the underlying pins the middle strike); max loss equals the net debit times 100. Two breakevens at lower-wing plus debit and upper-wing minus debit. For the ONX butterfly priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 153.00%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ONX butterfly?
- The breakeven for the ONX butterfly priced on this page is no defined breakeven on the modeled curve at expiration, derived from the September 29, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The ONX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 43.86%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on ONX?
- Butterflies on ONX are pinning bets - traders use them when they expect ONX to settle near a specific level at expiration (often the prior close, a round number, or the max-pain strike) and want defined-risk exposure to that outcome.
- How does current ONX implied volatility affect this butterfly?
- Current ONX ATM IV is 153.00%; IV rank context is unavailable in the current snapshot.